Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1033054 | Omega | 2008 | 9 Pages |
Abstract
This study characterizes order processes under (R,nQ)(R,nQ) inventory policies. We show first that the order distribution at an installation is stationary when it uses an (R,nQ)(R,nQ) control policy, for any arbitrary stationary distribution of customer demand. We then quantify variance amplification and show that variance of orders is never less than the demand variance. Finally, we extend the analysis to the case where the supply chain comprises of one distributor and NN retailers serving customers.
Related Topics
Social Sciences and Humanities
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Strategy and Management
Authors
Xiaoming Li, V. Sridharan,